As part of the counseling I advise the client (who typically are trying to increase there scores to purchase a home) that they need to only take the min amount once a month ($20.00).

The other thing I consider to be an asset about this card is that a consumer can set up for online bill pay for items that do not report to the 3 credit reporting agencies like rent, auto insurance, cell phone..etc. This payment history is reported to the PRBC that is a 3 party reporting agency and can be used as a supplement report to your main credit report when in application for a home loan, specially FHA. HUD has issued a statement that they prefer non traditional credit to be reported by a 3 party when being used in application for a home loan.

I also advise the client that this is a short term strategy and once they are able to apply for a traditional credit card to use (responsibly) to build credit they should do so or even look at some sort of secured loan with their local Credit Union.

My experience as a former Mortgage Broker (7 years) and as a Certified Credit Consultant through Central Michigan University as well as Regional Sales Director with Financial Education Services (7 Years) is these programs work but there also needs to be an exit strategy for the client to transition to more main stream credit building strategies ASAP.